Saudi Arabia Professional Employment Organization

Saudi Arabia Professional Employer Organization

Saudi Arabia Professional Employment Organization- In PEO Middle East we allow our partners to hire highly skilled workers in Saudi Arabia quickly and easily without registering a local entity or setting up a branch office. Similarly, by working with us you ensure the process of onboarding a candidate is efficient and compliant with the country’s employment laws.

Saudi Arabia Professional Employment Organization, Compensation and Benefits

Saudi Arabia Professional Employment Organization- In the same vein, we allow your company to skip the usual months’ process of hiring an individual. Therefore, the employees are assigned to your workforce in just a few days. In addition, we will take care of the different processes like HR solutions, benefits, payroll, and taxes.

Table of contents

  1. Hiring in Saudi Arabia
  2. Employment contracts in the country
  3. Working hours
  4. Payment
  5. Severance and termination of contracts
  6. Health coverage
  7. Benefits of working with us
  8. Why PEO Middle East is the best option for your business in Saudi Arabia Professional Employment Organization?
Hiring in Saudi Arabia

Hiring in Saudi Arabia

Companies in Saudi Arabia are under the rule of the Social Insurance Law and the Labor Law, and provisions of Shari’a, or Islamic law.

The country has created a plan called ‘Vision 2023’ that will revitalize and restructure the economy. Subsequently, the plan has features looking to increase the number of Saudi nationals employed in the private sector as well as the number of female employees in the workforce.

In other words, businesses violating the country’s employment laws may face a penalty ranging from 100,000 riyals to closing down the company.

However, the employment laws in the country are highly regulated, it is important that you pay attention and understand the local practices. In PEO Middle East we provide your business with a team of experts helping you with new employees. In addition, we also work with the best practices and cultural norms.

Employment contracts in the country

There are some regulations you must keep in mind when you are in the process of negotiating an employment contract in Saudi Arabia. Therefore, here is a list of some of the key factors you must contemplate to write a compliant contract:

Working hours

Certainly, employees have an 8 hours workday along with a maximum of 48 weekly spread across 6 days. Likewise, workers can work overtime if the workday does not exceed 12 hours. In other words, during Ramadan, Muslim workers may work a maximum of 6 hours per day or 36 hours weekly.

However, Fridays and Saturdays are weekend days, and Friday is the weekly paid rest day. For instance, companies can replace this day with another day of the week if they previously notify the government. Similarly, organizations may replace this with another day of the workweek as long as they notify the ministry.

Similarly, in distant areas that require continuous work, the workplace can merge rest periods per week for up to 8 weeks if the worker and the company agree, and the Ministry of Labor approves.

Moreover, workers cannot work more than 5 continuous hours without a break, with the exception of some positions including janitors, guards, management, or intermittent jobs.


Consider the following factors when you are in the process of offering an employment contract to a new employee:

  • There is no mandatory minimum salary in the private sector. Similarly, the Saudi government suggests 3,000 riyals per month.
  • Companies must pay at least monthly during normal working hours.
  • Similarly, companies can make deductions to the workers’ salary without their written consent for the reasons of fines, social contributions, or loans.
  • Overtime pay is equal to 150% of a regular salary.

In PEO Middle East, we will provide with understanding and resources about worker compensation, this way you know about the different contract practices in the country.

Severance and termination of contracts

Certainly, the employment contracts can be terminated if all parties involved agree; therefore, the employee must present the approval in writing. However, some of the reasons range from force majeure, or for a valid reason notified at least 60 before the termination day.

Thus, if the company of the worker terminates the contract without notice, they must compensate the other party’s wages for the balance of the contract or the duration of the notice period.

In other words, a worker who resigns has the right to 1/3 of their end-of-service benefit after 2 to 5 years of employment or 2/3 of the award between 5 and 10 years.

However, any organization can terminate the contract without notice if the worker incurs one of the following:

  • Assaults any co-worker or superiors.
  • Do not obey legitimate orders or fail to perform basic obligations.
  • Has dishonesty or misconduct.
  • Shares work-related secrets.
  • Carries out any intended activities to cause loss to the company. However, the organization can report this incident within 24 hours.
  • Committed falsification of any kind to obtain the job.
  • Do not show up to work without a reason for 15 continuous days or more or 30 total days in a work year as long as the company provides a warning after 10 days.
  • Takes advantage of the position for personal gain.

Health coverage

The majority of health care in the country is public, provided by the Ministry of Health, and funded by the government. Therefore, it is free for ex-pats and Saudi citizens working in the public sector.

Moreover, there is private health care, which is provided via private health insurance. In addition, private businesses must provide health insurance for their workers. That is to say, these plans only cover the basics, this is the reason why many workers take out additional private insurance.

In the set of features of Vision 2030, healthcare is being privatized and digitalized.

Benefits of working with us in Saudi Arabia Professional Employment Organization

  1. Employee onboarding and recruiting: by working with us you ensure the employees are ready to work for your organization quick and easy.
  2. HR management: we provide support and assistance for you and your workforce to effectiveness.
  3. Legal assistance: similarly, our team of experts will assist you with local employment laws and regulations.
  4. Payroll administration: we also take care of your payroll and taxes so you can focus on core business tasks.
  5. Compensation and benefits: our team of specialized experts will improve your compensation management and benefits.
  6. Additional services: we have an extended range of solutions and services to boost your company such as HR consultancy, employee sponsorship, and more.

Why PEO Middle East is the best option for Saudi Arabia Professional Employment Organization in your business?

One of the main reasons our partners like to work with us is because we allow them to access the best employee recruiting services in Saudi Arabia without having to register a legal entity or establish a branch office. That is to say, working with us you ensure your business stays compliant with the different laws of this country.

If you would like to contact us or have any inquiries regarding Saudi Arabia Professional Employment Organization , you can email us via [email protected]. Or you can call us at +971 433 1 688.

Saudi Arabia Professional Employment Organization and Managing your team

Saudi Arabia Professional Employment Organization- An international workforce is an essential tool for your company's growth. Expansion comes with a few hurdles, though. Managing your team in a single office involves several administrative tasks. Those responsibilities become even more challenging when you have employees around the world.